STAGE 3b) CREATE OPTIONS: EVALUATE ALTERNATIVES

“Whenever you see a successful business, someone once made a courageous decision.”Peter Drucker

Once we have fully developed some alternative directions, it is time for us to evaluate them.

We should think about how fundamentally attractive this strategic position will be in the future. It should fit with the future trends/scenarios we identified and have the potential to generate a significant financial return.

Separately, we should think about whether our starting position is ahead of competitors. We want to avoid “stern chases” - racing a competitor who has a head-start on us. Unless we can run much faster than them! We can consider how this alternative strategy will play to our strengths - and what remaining gaps we have.

Finally, we should consider our will to execute. Does this strategy fit with our fundamental values and purpose, thus inspiring and energising our organisation?

If none of the opportunities appear to meet our financial ambitions, should we loop back and revisit our strategic process, or should we revise our financial goals?

Questions to answer

How many opportunities are we able to fully resource?

How attractive is each opportunity? What is the size-of-the-prize?

Will we be able to win?

Can we implement? Will we need partners/acquisitions?

What are the criteria for choosing between alternative strategies?

What tests/experiments do we want to set up to explore potentially interesting opportunities that we are not ready to commit full resources to?